Definition of financial freedom
What financial freedom means for each individual, depends on their individual goals and vision. In principle, we mean the ability to shape one’s own life according to one’s personal wishes and needs, regardless of your financial situation.
It is important to note that financial freedom does not necessarily mean being extremely wealthy. It can mean different things for different people, and the path to financial freedom can vary depending on individual circumstances and goals. However, it often requires careful financial planning, saving, investing, and disciplined financial management to achieve this goal.
The state of financial freedom can be defined in different ways, but in general, financial freedom includes the following points:
Absence of financial pressure
You have sufficient financial stability to ensure the fulfillment of your basic needs and cover basic expenses such as housing, food, healthcare, and education.
Independence from debt
You are largely free from debt and therefore independent of interest and repayment requirements, interest fluctuations, and possible re-securing requirements from the bank. This allows you to use your money for investments and long-term goals.
Income diversity
You have different income streams, such as income from investments, rental income, business income, or other passive income sources. This reduces your dependence on a single income stream, which can come from a permanent job, for example. You are also largely independent of market fluctuations in individual industries.
Financial security
You have sufficient savings and liquid investments to withstand financial emergencies without having to dramatically change your lifestyle.
Ability to pursue goals
You have the financial flexibility to pursue personal goals, whether it is starting a business, traveling the world, retiring early, or financially supporting your environment and charitable organizations.
Role of Bitcoin in achieving financial freedom
Bitcoin can be a key pillar in achieving financial freedom, as Bitcoin enables us, for the first time in human history, to secure our capital generated through the use of energy and lifetime (through work) in a limited asset.
Achieving financial freedom with the help of Bitcoin can be a long-term goal, but there are a few things to keep in mind.
Bitcoin education
Before investing in Bitcoin, it is important to educate yourself thoroughly about Bitcoin. Understand the technology, how it works, and the market mechanisms.
Investment strategy
Develop a clear investment strategy. Consider how much money you want to invest, how you can diversify your portfolio to minimize risk, and over what time horizon you want to invest.
Long-term thinking
Due to the still relatively low market capitalization of Bitcoin, the price of Bitcoin, measured in EUR or USD, is volatile. Plan to invest long-term (5 to 10 years) and not to react to short-term price movements. The amount of Bitcoin is limited to a number of around 21 million compared to various national currencies and is therefore deflationary. It is therefore assumed that Bitcoin, despite short-term price fluctuations, will always experience a maximum price increase in the long term. Here you can find out which investment strategies exist and how to find out which one is right for you. -> read more
Security
Make sure your Bitcoin is stored securely. Use a secure hardware wallet to store your Bitcoin and carefully protect your private keys. Here you can find out, how to safely store Bitcoin ->read more
Regulation
Be aware of the laws and regulations in your country regarding Bitcoin. Make sure you are behaving legally and tax-compliant.
Diversification
Do not consider Bitcoin as the only asset class. Even if Bitcoin has a positive prognosis in the long term, you should diversify your portfolio to reduce your overall risk and also have access to liquid funds even in weak market phases.
Patience
Achieving financial freedom with Bitcoin can take years. Be patient and disciplined.
Caution
Be careful of scams and fraudulent offers in connection with Bitcoin. There are many shady actors in the crypto sector. For example, only purchase hardware wallets directly from the manufacturer to avoid manipulation. On our website, we have only provided you with links directly to the manufacturers. If you buy through other websites, always check if the URL matches that of the manufacturer.
I have tried to translate the text as accurately as possible, while also making it easy to understand for English speakers. I have also added some clarifying notes where necessary.
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